1. Technical Assistance for Development of a Strategy for Alignment with
Common Market Organisation (CMO) Requirements
TR2014/AG/10-A1-01/001
This Project is co-financed by the European Union and the Republic of Turkey
II. PRESENTATION OF SELECTED CMO SCHEMES: Intervention measures; aid schemes; vine plantings; sugar; state aid
Antalya, 1st March, 2018

2. Contents Market intervention measures: Aid schemes
Public intervention
Aid for private storage
Aid schemes
School schemes
Support in the olive sector
Aid in the fruit and vegetables sector
Support in the wine sector
Aid in the apiculture sector
Authorisation for vine plantings
Specific provisions in the sugar sector
Provisions on state aid

3. Intervention measures:
Introduction
Articles of the ‘umbrella’ CMO Regulation 1308/13
Objective: support to sectors in cases of market disturbances
Achievement of the objective:
Removal of certain quantities of products from the market by buying-in by the Paying Agency (public intervention) or support to producers who store their products (private storage aid)
Selling of stored products on the market
Preconditions for implementation:
Price monitoring system must exist
Reference prices must be established in advance
System for implementation must be established by the Paying Agency

4. Public intervention
Eligible products: wheat, barley, maize, rice, bovine meat, butter, skimmed milk powder
Two types of intervention:
at fixed price (wheat, butter and milk powder): intervetion buying-in is done during intervention period regardless of the market situation for fixed quantities (wheat 3 million tons, butter 30,000 tons, milk powder 190,000* thousand tons)
by tender: in cases of market disturbance
Discharge of stored products from intervention: mostly through sales by tender; distribution to the poor is possible
* For 2018 the buying-in of milk powder at fixed price is suspended because of large quantities (almost 400 thousand tons) in intervention storage!

5. Private storage aid
Eligible products: sugar, olive oil, flax, bovine meat, butter, cheese, skimmed milk powder, pigmeat, sheep and goat meat
Implementation of measure:
In case of market disturbance tenders are published for producers who agree not to place their product on the market for a certain period of time
Producers conclude a contract with the Paying Agency stating the quantity and duration of private storage for which aid will be provided
For some product private storage aid has been never applied (example: sugar)!

6. Future of intervention measures
Intervention measures are an important element of the CMO and will remain in the next programming period 2021 – 2027;
Measures seem to be adequate for normal cyclical market fluctuations, but not for big market disturbances (eg. the disturbance caused in 2014 by the Russian import ban), therefore,
Member States request efficient measures for situations of market crisis which can be implemented quickly and for which enough financing is available

7. Case study: Russia’s ban on EU imports Reference on how much is ‘loss’?

8. Aid schemes: introduction
Articles of CMO Regulation
Objective and achievement of objective
Promotion of healthy eating habits  school schemes (milk, fruits & vegetables)
Improvement of production and marketing in the olive sector  support to programmes of producer organisations
Stabilisation of the market and concentration of supply  support to operational programmes in the F&V sector
Competitiveness and stabilisation of the market in the wine sector  support to national programmes
Improved production and marketing in the apiculture sector  support to national programmes

9. Aid schemes: quick overview
Some measures require the existence of national strategies (school fruit and milk, apiculture, wine)
Some measures require the existence of approved producer organisations (aid in the F&V sector, aid in the olive oil sector)
Measures are co-financed  Member States and/or producers must cover part of the financing
Measures are optional for Member States (school schemes, operational funds in F&V, support in wine sector, apiculture)

10. „School schemes”
Target group: children attending pre-school, elementary or secundary schools
Eligible products: fresh or processed fruit and vegetables; drinking milk, cheese, curd, yogurth and other fermented milk products
products must not contain added sugar, sweeteners, salt, fats or flavour enhancers
Precondition for implementation - national strategy covering six years, containing:
needs and expected results from the scheme
eligible products
accompanying educational measures
Union aid is provided for: supply and distribution of products; accompanying educational measures; publicity, monitoring and evaluation
Total amount at EU level 250 mil. EUR, each Member State has its envelope (+ possibility for co-financing up to the limit!) 10

11. Aid in the olive oil and table olives sector
Target group: recognised producer organisations or their associations
Measures eligible for EU funding: measures from work programmes of the POs, such as:
Marketing of table olives or olive oil;
Improvement of environmental impact of olive production;
Improvement of competitiveness;
Improvement of product quality
Precondition for implementation: POs have approved three-year work programmes
Rate of EU co-financing: up to 75%
Measure is implemented in only three Member States: Greece, France and Italy (not in Spain which produces 50% of EU olive oil)
For the future implementation in the acceding countries it is needed to submit request during the accession negotiations! 11

12. Aid in the fruits and vegetables sector
Target group: recognised producer organisations who set up an operational fund !
Measures eligible for EU funding: measures from operational programmes of the POs, such as:
Planning of production
Improvement of product quality
Promotion
Environmental measures
Crisis prevention and management
Precondition for implementation: POs have operational programmes of duration from 3-5 years approved by Member States and in accordance with national strategies
Environmental measures in the operational programmes should cover at least 10% of the funding
EU co-financing rate: up to 50% of the actual expenditure 12

13. Support in the wine sector
Target group: Member States which implement 5-year national support programmes
Measures eligible for EU funding:
Promotion
Restructuring and conversion of vineyards
Green harvesting
Harvest insurance, mutual funds
Investments (in Croatia 2/3!)
Innovations
Distillation of wine by-products
Precondition for implementation: support programmes of the Member State are approved by the European Commission
Member States can be co-financed by the EU within limits of their national envelopes 13

14. Aid in the apiculture sector
Target group: Member States which implement 3-year national support programmes
Measures eligible for EU funding:
Technical assistance for beekeepers and their organisations
Combating disease, especially varroasis
Rationalisation of transhumance
Support to laboratories
Market monitoring
Enhancing of product quality
Precondition for implementation: national apiculture programmes of the Member State are approved by the European Commission 14

15. Authorisation of vine plantings
Articles of the CMO Regulation
Objective: to control the increase of wine production in EU and thus protect the stability of the market
Implementation: Member States grant authorisation for new planting upon request; limit of new plantings per year = 1% of the Member State area under wineyards
Exemptions from authorisation of vine plantings:
Areas planted for experimental purposes
Areas planted for the consumption in the household of the wine-grower
Member States with less than 10,000 hectares of vineyards
Member States which did not implement the planting right regime on (applicable for Croatia!)
Scheme applies until 15

16. Measures in the sugar sector
Articles of the CMO Regulation
During the production quota system sugar was one of the most regulated sectors:
Limits on production of beet sugar: MSs & producers
OOQ sugar
Production levies & Minimum beet prices
Special export / import regime for quota and OOQ sugar
Since 1 October 2017 only Articles 125 and 126 apply!
Objectives:
Art. 125: to regulate the relationship between producers and buyers of sugar beet (sector agreements);
Art. 126: to monitor the sugar market. 16

17. Sugar sector agreements
Written agreements on buying of sugar beet must be concluded between sugar beet growers and sugar untertakings
Mandatory elements of the agreements (Annex X of Regulation 1308/2013):
Quantity of beet to be delivered and price for those quantities
Price adjustments if the beet is not of standard quality
Sugar content of the beet and methods for determining the sugar content
Conditions linked to delivery and transport
Procedures for determining the delivery weight
Procedures for handling the beet pulp
Period for payments (case study: national legislation differs!) 17

18. Monitoring of the sugar market
Member States have the obligation to notify to the Commission data on (new rules as of 1 October 2017!):
Prices: each month for sugar, end of June for sugar beet
Production – once a year: sugar beet area; production of sugar, bioethanol and isoglucose
Stocks: each month for sugar and isoglucose
Details provided in Commission Implementing Regulation 2017/1185
Data published on the Sugar Market Observatory website of DG AGRI 18

19. State aid Articles 211 - 218 of the CMO Regulation
State aid provisions of the TFEU aim to protect the functioning of the common market by limiting support by Member States to enterprises and introducing procedures for approval of state aid
State aid provisions of the CMO regulation provide exemption of CMO measures from state aid rules, thus
Payments by Member States for financing of CMO measures shall not be subject to additional approval by the Commission in accordance with state aid rules (eg. apiculture, wine programme, school scheme)
Other national payments exempted from state aid rules:
National payments for Finland and Sweden from their accession treaties (eg. reindeer, sugar)
National payments for nuts 19

20. This publication has been produced with the financial assistance of the European Union
The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union